| Subject: | [socialcredit] Re: the trade-off | | Date: | Thursday, November 3, 2005 09:03:31 (-0800) | | From: | William B. Ryan <w_b_ryan @.....com>
|
Per, the point was about non-linearity. Did you miss
it? The trade-off between "unemployment" and
"inflation" does not mean that both might not increase
but that they cannot increase or decrease
proportionately, inasmuch as the ratio of A is falling
in respect to B regardless of what the financial
authorities might do with the tools they have at hand.
So we have today the permanently underperforming
economy: where the authorities are adept at steering
the mid-course between excessive "unemployment" and
excessive "inflation."
Take the ratio A+B/A.
In principle, the economy could be guided to a very
high level without inflation by moderating the
numerator (that is to say by controlling the flow of
bank credit) while at the same time augmenting the
denominator extraneous to the costs of production in
the following ratio:
A+B/A+Dividend
The matter is discussed in Part II, Chapter II of
Social Credit.
http://www.geocities.com/socredus/compendium/chap2part2.txt
Please read it.
----------original message----------
Subject: Re: [socialcredit] the trade-off
Date: Thursday, November 3, 2005 14:39:36 (+0100)
From: Per Almgren <info@nordspar.se>
I thougth that the Phillips Curve was dead at least
since the end of the seventies. Conventional economics
says that the stagflation period that just passed put
an end to it. From a little more mathematical point of
view there is only quite special circumstances that
would allow such a thing to be true. In short,
inflation is the changes of prices during a time
period. A constant level of unemployment doesn't mean
a change of costs during a time period. There is more
likely that there is a (linear) relationship between
the change of uneployment during a time period and the
inflation. When unemployment rises (labor costs
decrease), it would prevent (part of) the inflation,
or even cause deflation.
Per Almgren
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